Abstract
Price is a very important part of the marketing mix as it can affect both the supply and demand of the firms’ products. Since pricing strategies influence has an impact on market share, performance and growth of the firm, every firm has its separate pricing policy or strategy for its products. This study therefore sought to examine the effect of pricing strategy on growth of selected hotels in Nyeri County, Kenya. The study was anchored on Ansoff matrix; 4C’s marketing model and Unique Selling Proposition. The study used descriptive research design. The study used questionnaire as the primary research instruments. The researcher used Cronbach alpha Coefficient to assess reliability of data using. The target population for this study was the 57 respondents from selected hotels within Nyeri County. A self-administered, questionnaire was used to collect data from the target respondents. Data analysis results generated using SPSS version 21 was presented in form of frequency tables. Bivariate Linear Regression results indicated that price had positive and statistically significant effect on hotel growth. The study recommends the hotel managers to review their prices regularly without compromising quality. In addition, hotels should come up with criteria that should ensure communication reach all the potential customers effectively. Future research should focus on other marketing mix variables such as promotion, place and product to establish the effect on growth of hotels.
Highlights
Price is defined as the amount of money charged to the buyer for acquiring as well as using a product (Fyall and Garrod, 2005)
The results revealed that 26% of the respondents were aged below 35 years, those who were aged between 35-40 years were 38% while those who were aged between 40-45 years were 26% and those who were aged above 45 years were the minority, 10%
The findings showed that 68.0% of the respondents indicated that prices were affordable, 16% unaffordable, 12% very affordable while 12% said that the prices were very unaffordable
Summary
Price is defined as the amount of money charged to the buyer for acquiring as well as using a product (Fyall and Garrod, 2005). According to Rogerson (2013), on a study in South Africa, price determines the amount of profits a company makes He noted that price is the value attached to a product and it’s the lone element of the marketing mix that makes profit for the organization. Lamb, Hair and McDaniel (2012) studied on the broad perspective of the marketing mix and concluded that, for instance, price comprises of more than the amount of money that the consumer pays when buying a product which is the basic definition. It includes issues such credit deals, discounts available and special offers. They must plan product cost on the basis of their customer
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